This is a diferent era, and kids have a lot more information and instant contact with other players all over the country without running up unaffordable phone bills. Also, this generation of players seems to be a lot less patient about playing time than others have been. I think a lot of it could also be their parents telling them they are "better" than they really are, and pressuring them to leave any situation they deem "unacceptable."
It's not just UM, but it's pretty much everywhere now. Kids who don't get what they want right now go to the next place that tells them they will get what they want. Usually, they still don't get what they want at the next place, but by then they apparently either don't want to go through the BS again or they mature and become humbled by finally percieving their own limitations. The difference at UM is that it is harder to accept transfer students than it is at other universities, so the out/in ratio gets skewed compared to other schools.
Anyway, stuff happens. UM will be fine. As for Smith, I'm neutral. I don't wish him ill, but I don't wish him good luck, either. I would rather save my wishes for players who play at UM.
If he creates a shitstorm on the way out, though, I reserve the right to wish bad things for him.